equity credit line
- noun
- Specialized
:
línea de crédito sobre el capital
- She applied for an equity credit line to renovate her kitchen.
- a home-equity credit line
Examples
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They used an equity credit line to finance their home renovation project.
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If you have sufficient equity in your house, you may qualify for an equity credit line.
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The bank offered her a lower interest rate on the equity credit line compared to a personal loan.
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Many homeowners prefer an equity credit line for its flexibility.
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If you must borrow, an existing equity credit line may be your best choice.
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To find the lowest interest rates on equity credit lines where you live, try the website bankrate.com.
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The Nahirnys are paying nearly 7% interest on their $35,000 equity credit line and the $30,000 mortgage on a house where their daughter lives.
Synonyms
A loan that uses the value of your home as security for big costs
How Big
Surface Forms
Morphology
The phrase is compositionally built from 'equity' (owner's stake) + 'credit line' (a borrowing facility), so its meaning — a borrowing facility secured by home equity — can be inferred from the parts. However, the term is specialized banking jargon that relies on the collocation 'line of credit' and domain knowledge, so an average B1 learner who knows the individual words may still miss the exact financial/legal sense without prior exposure.
Etymology
Equity credit line combines equity, meaning the part of your house you really own, and credit line, meaning a reserve of money you can borrow when you need it. So, it means 'a loan you can take using the value of your home'.